Capital Gains Tax on crypto and NFTs in the UK

HMRC does not treat cryptoassets as currency. For individuals investing in them, tokens are chargeable assets for Capital Gains Tax (CGT), much like shares. That means gains are taxed when you dispose of tokens, and many everyday crypto transactions count as disposals.

What counts as a disposal

You dispose of cryptoassets when you:

• sell them for pounds or another currency
• exchange them for a different cryptoasset, including stablecoins
• use them to pay for goods or services
• give them away, except to a spouse, civil partner or charity

Moving tokens between your own wallets or exchange accounts is not a disposal, although transfer fees paid in tokens may be.

Working out the gain

Gain = disposal value − allowable costs. Where you exchange one token for another, or spend tokens, the disposal value is the sterling market value of what you received at the time.

Pooling

Each type of token is held in its own pool, with an average cost:

• buy 100 tokens for £200, then 300 more for £300
• you hold 400 tokens with a pooled cost of £500, or £1.25 each
• sell 200 tokens: the allowable cost is £250

As with shares, tokens bought on the same day as a sale, or in the 30 days after it, are matched first, before the pool. This stops gains or losses being crystallised by selling and immediately buying back.

Allowable costs

You can deduct exchange and transaction fees, the pooled cost of the tokens, and the costs of valuations or contracts for the transaction. You cannot deduct mining equipment or electricity costs against gains, or costs already deducted for Income Tax.

Rates and the annual exempt amount

Gains above the £3,000 annual exempt amount are taxed at 18% within your remaining basic rate band and 24% above it in 2026/27. Gains and losses on crypto are combined with gains and losses on other assets for the year. See CGT rates 2026/27.

Crypto taxed as income

Some crypto receipts are taxed as income rather than capital:

The value taxed as income becomes the base cost of those tokens for a later CGT disposal, so you are not taxed twice. DeFi lending and liquidity arrangements can be complex: depending on the terms, depositing tokens may itself be a disposal. HMRC’s Cryptoassets Manual sets out its views.

NFTs

Non-fungible tokens are chargeable assets in the same way. Selling an NFT, or exchanging it for crypto, is a disposal, and its market value at the time is the proceeds. Creators who mint and sell NFTs as a business may be taxed on trading income instead. Each NFT is a separate asset, so pooling does not apply.

Losses

• Losses on crypto disposals can be set against other gains and carried forward, if reported within four years of the end of the tax year.
• If tokens become worthless, or a platform collapses and recovery is unlikely, you may be able to make a negligible value claim to crystallise a loss. Lost private keys are not usually enough on their own, because the tokens still exist.
• Theft is not a disposal, so a loss cannot normally be claimed for stolen tokens.

See CGT loss relief.

Records you must keep

For every transaction, record:

• the type of token and the date
• the number of units
• the value in pounds at the time
• the cumulative total of each token held and the pooled cost
• bank statements, wallet addresses and exchange records

Exchanges may close or delete data, so download transaction histories regularly. Crypto tax software can import exchange and wallet data and apply the pooling rules.

Reporting and HMRC data

Report gains on your Self Assessment return, which has had a separate section for cryptoasset disposals since the 2024/25 return, or through the real-time CGT service if you do not file. Under the Cryptoasset Reporting Framework, UK crypto platforms have collected user and transaction data since 1 January 2026 to report to HMRC, so undeclared gains are increasingly likely to be found. If you have unreported gains from earlier years, HMRC’s disclosure facility lets you correct them, with lower penalties than if HMRC finds them.

Frequently asked questions

Do I pay tax when I swap one cryptocurrency for another?

Yes. Exchanging one cryptoasset for another is a disposal for CGT, valued at the sterling market value of the tokens you receive.

Is moving crypto between my own wallets taxable?

No. Transferring tokens between wallets you own is not a disposal, though fees paid in tokens may be.

Are staking rewards taxed as income or capital gains?

Usually as income when received, at their market value. CGT then applies to any increase in value when you dispose of them.

What if I lose my crypto keys?

Losing access is not usually a disposal by itself. You may be able to make a negligible value claim in limited circumstances, but HMRC treats lost keys cautiously.